Take a moment to imagine yourself when you’re 70 years from now and you’re looking back on your lives. The question is: will you be super rich or wealthy?
Think about it. Do you think you’ll be wealthy based on your current lifestyle? Be honest with yourself.
For many people, the answer may be a resounding “no.” You may be living paycheck to paycheck, struggling to make ends meet, or stuck in debt. You may be putting off saving and investing for the future, telling yourself that you’ll start tomorrow, next week, or next year.
But here’s the thing: tomorrow, next week, and next year will come and go, and before you know it, you’ll be 80 years old, wondering where it all went wrong.
So, what can we do to change our financial trajectory?
Let’s look at the power of compound interest. One of the most powerful tools at our disposal is compound interest. By starting to save and invest early, we can harness the power of compound interest to grow our wealth over time.
For example, let’s say you start saving ₦50,000 per month at age 20. Assuming a 7% annual return, by the time you’re 80, you’ll have amassed over ₦1.3 billion. That’s the power of compound interest!
Now, I know what you might be thinking: “But I don’t have ₦50,000 per month to spare.” That’s okay! The point is, every little bit counts. Even small changes to your daily habits can add up over time. Small changes add up
For instance, cutting back on just sone unnecessary expenses could save you around ₦5,000 per day, or ₦1,825,000 per year. That’s money that could be invested in your future.
So, what can you do today to start building wealth for the future and take control of your finances? Here are a few suggestions:
- Start saving: Set aside a fixed amount each month, no matter how small and be consistent. In fact the easiest way is to set an automatic deduction on your account through your bank.
- Invest wisely: Consider contributing to a retirement account, such as a pension fund or a mutual fund.
- Cut back on unnecessary expenses: Identify areas where you can cut back and allocate that money towards saving and investing. The problem most people have is, once they are able to identify areas they can cut down, they allocate those funds to other expenses instead of saving it up.
- Educate yourself: Learn about personal finance, investing, and wealth-building strategies. Seek knowledge, be financially aware. The difference between the poor and the rich is the knowledge and information available to them.
So, will you be wealthy by the time you’re 70 or 80 years old? The answer is, it’s up to you. By taking control of your finances, making small changes to your daily habits, and harnessing the power of compound interest, you can set yourself up for financial success.
Remember, it’s never too early—or too late—to start building wealth. Get started now!
Let me know if you find this useful. Have joyful holiday and I wish you a happy new year in advance.
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